The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Pete has a South African restaurant in the centre of Stafford. To ensure that his meals are as authentic as possible he imports some of the ingredients from Cape Town. The exchange rate between the pound (£) and the Dollar($) is very important to Pete. He buys 500 kg of Biltong from Cape Town every month. The Biltong costs $10 per kg.

Since his last shipment in February, the exchange rate has changed to £1.00 = $1.50 from £1 = $1.40

What would be one effect on Pete’s business of this change, assuming he imports the same amount of Biltong each month?

Select ONE answer:

Lower profit

Cash flow improves

Able to charge lower prices

Lower variable costs

Show the workings to arrive at your answer, and explain and justify your reasons:

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Pete has a South African restaurant in the centre of Stafford. To ensure that his meals are as authentic as possible he imports some of the ingredients from Cape Town. The exchange rate between the pound (£) and the Dollar($) is very important to Pete. He buys 500 kg of Biltong from Cape Town every month. The Biltong costs $10 per kg.

Since his last shipment in February, the exchange rate has changed to £1.00 = $1.50 from £1 = $1.40

What would be one effect on Pete’s business of this change, assuming he imports the same amount of Biltong each month?

Select ONE answer:

Lower profit

Cash flow deteriorates

Able to charge lower prices

Higher variable costs

Show the workings to arrive at your answer, and explain and justify your reasons:

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Pete has a South African restaurant in the centre of Stafford. To ensure that his meals are as authentic as possible he imports some of the ingredients from Cape Town. The exchange rate between the pound (£) and the Dollar($) is very important to Pete. He buys 500 kg of Biltong from Cape Town every month. The Biltong costs $10 per kg.

The exchange rate is £1.00 = $1.40.

How much does Pete have to pay, in pounds (£), to buy the Biltong each month?

Select ONE answer:

£4,000.00

£3,846.15

£3,703.70

£3,571.43

Show the workings to arrive at your answer, and explain and justify your reasons: